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Policy Analysis with Integrated Rural/Farm Household Data

Policy Analysis with Integrated Rural/Farm Household Data. Mitch Morehart, Jeffrey Hopkins, and James Johnson. Third International Conference on Agricultural Statistics, Cancun Mexico, November 2-4, 2004. Complexity of Farm Household Structure. Determinants of ARMS Content.

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Policy Analysis with Integrated Rural/Farm Household Data

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  1. Policy Analysis with Integrated Rural/Farm Household Data Mitch Morehart, Jeffrey Hopkins, and James Johnson Third International Conference on Agricultural Statistics, Cancun Mexico, November 2-4, 2004

  2. Complexity of Farm Household Structure

  3. Determinants of ARMS Content

  4. Stakeholder Involvement In Production Activities of U.S. Household-Farms Of the 2.1 million U.S. farms: • Landlords--209,000 farmers rent land for a share of production; another 633,000 farmers rent land for cash • Lenders--910,000 farmers owe debt at year-end; almost all use debt during the calendar year • Hired Labor--632,000 farmers use hired labor • Contract Entities--50,000 farmers grow agricultural commodities for other firms under a contract arrangement • Partners--93,000 households organized their farm as a partnership • Shareholders--65,000 households organized their farm as a family corporation • Multiple Operator Households--145,000 farms are organized with multiple households providing production assets

  5. Modular Design Enables ARMS To Reflect Complex Farm Structure

  6. ARMS correctly assigns income and expenses to the different stakeholders

  7. Household income and wealth come from a variety of sources

  8. Policy Example 1: Savings, Income Volatility, and Basic Needs

  9. Policy Example 2: Farm Household Impacts from Policy Reform

  10. Policy Example 3: On-farm Technology Adoption

  11. Implications • ARMS data collection is driven by issues confronting households that operate farm establishments • Data collection reflects measurement concepts for households, farm establishments, and the U.S. farm sector • Issues confronting ARMS measurement system are dynamic • Multiple income and wealth measures and changes in demand for data: imply need to collect data at the item and unit level of measurement • Imply need to store data at item and unit level to enable use over time and across different issues and groups • Household measures are developed within the context of the farm establishment to facilitate use in applied analyses

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